Tesla cuts prices in US, China and Germany as competition heats up

[2210606 석가경 (경영)]

CNN — Tesla has announced aggressive price cuts in China and Germany, shortly after reducing prices in the United States, as the world’s largest maker of electric vehicles (EV) faces declining sales and growing competition in major markets. The latest round of price cuts adds to a series of price cuts that Tesla has made dating back to early last year to try to maintain demand in the face of increased competition from EV offerings by traditional automakers and higher interest rates driving up the cost of car purchases for many buyers. Tesla’s price cuts have squeezed its profit margins and caused its stock to fall about 4% in trading Monday, ahead of its first quarter earnings report due out after the bell Tuesday. On Sunday, the EV giant slashed the starting prices of four models sold in mainland China, its largest overseas market, by 14,000 yuan ($1,932). The Model Y, the company’s bestselling car in the country, now starts at its lowest -ever price of 249,900 yuan ($34,502). In Germany, Tesla’s biggest market in Europe, the price of its Model 3 rear-wheel drive was also lowered by 2,000 euros ($2,132) to 40,990 euros ($43,707), according to its official website. The first cuts were announced on Friday in the US, when Tesla reduced the prices of three of its five models. The prices of the Model Y, Model X and Model S were cut by $2,000 each, while those for the Model 3 and the Cybertruck remained unchanged. The flurry of cuts comes during a tough time for Tesla. Its stock has plunged more than 40% year-to-date, after it reported a drop in quarterly deliveries for the first time in nearly four years and announced job cuts equivalent to more than 10% of its global staff. On Saturday, Tesla CEO Elon Musk said he had postponed his planned trip to India, citing “very heavy” obligations at the company. He was due to arrive in the country this week for a visit that was expected to include a meeting with Prime Minister Narendra Modi and confirmation that Tesla will build a factory in the world’s most populous country. China gets tougher In China, the largest EV market in the world, Tesla’s price cuts are expected to exacerbate an existing price war in a highly competitive sector.

출처 https://edition.cnn.com/2024/04/22/cars/tesla-price-war-china-germany-us-intl-hnk/index.html

사견 (my opinion)

The price cuts by Tesla appear to be a strategic move, likely aimed at maintaining demand and securing market share in response to fierce competition in the electric vehicle market and high interest rates for many buyers. However, there could be drawbacks such as reduced profit margins and a decline in stock prices. Therefore, Tesla should focus on prudent pricing strategies while prioritizing product quality and technological innovation for long-term success.

[현승용]

awesome! :)

[주효빈(경영)]

Tesla's price adjustment is likely to have a big impact on the market as the company is leader in the ev market.
As a result, the price competition in the market will begin. I think that there will be a backlash of Tesla's owners.